issue 4, december 2013
Transcription
issue 4, december 2013
06 2013 hume business awards 08 Australian Made Campaign 10 willow ware 14 kelly & windsor issue 4, DECEMBER 2013 /2 ECONOMIC UPDATE HUME CITY COUNCIL CONTENTS 3 Know your Mayor 4 Online in Hume 5 Retailing in Hume 6 2013 Hume Business Award Winners Excelling in Business 8 Australian Made Campaign 10 Willow Ware 12 Hypersonic Industries 13 Silhouette Karts 14 Kelly & Windsor People in Hume 16 Russell Hughes 16 Jeff Graham 16 Melissa McInnes Hume City Snapshot 17Statistics Mayor Cr CASEY NUNN Welcome to the last edition of the Hume Economic Update for 2013. This edition wraps up another successful year and marks the start of summer and the holiday season. We’ve had many highlights this year, including the recognition of 22 businesses receiving an award across 14 categories at the Hume Business Awards in September. Congratulations to all businesses, may you all continue to grow and set an example for others to follow. The holiday season is here and it is the time of the year when people buy gifts for family, friends and themselves. This edition has a special feature on polishing your website to maximise and convert online traffic into sales. You can learn to increase your sales through digital media by reading and activating Online in Hume. Retailing in Hume will feature some good examples of visual merchandising and trends in the Retail sector. We are all aware of the benefits of buying local and some of us even try to find products that proudly promote the Australian Made symbol. Hume City has twenty five businesses registered with the Australian Made Australian Grown Campaign. These businesses set an example for others by leading the way to support and promote high quality Australian Made products across a variety of sectors. These licensees demonstrate innovative and smart business models where they have used the Australian Made logo to not only improve their domestic market output but improve international market representation. You’ll find the interview with Australian Made CEO Ian Harrison a compelling read. This is the time of the year when we reach into the garage storage to fish out our prized cooler, for those outdoor adventures we all love. You might be surprised to learn that Willow Ware located here in Tullamarine is Australia’s most prominent manufacturer of these treasured items. The Australian Made logo has been a key driver supporting their reputation and growth. Remember the days of school camps or the holiday trips visiting friends and family? You may even have memories of bunks and folding beds. Hypersonic Industries specialise in the manufacturing of comfortable bunk beds, folding beds and special tubular beds and have lead the way for the last 50 years. They have captured the market in Australia and supply nationwide. For those of us who love to go karting, Silhouette Karts in Somerton bring another dimension to this driving experience. Silhouette Karts not only have a race track with karts but also manufacture customised karts. Sounds like a fun day out! Kelly & Windsor are another very special local company dedicated to manufacturing Australian luxury alpaca quilts, pillows and under-blankets. Being an Australian Made licensee has been critical to their strategic export expansion, selling their products to targeted markets around the globe, and assisting them to stand out from the crowd. Please enjoy the rich stories in this edition;I’d also like to wish you ‘Seasons Greetings.’ Stay safe and well and all the very best for 2014. CASEY NUNN Hume CITY COUNCIL IS A PROUD supporter of the AUSTRALIAN MADE, AUSTRALIAN GROWN campaign Cover: Willow Vintage Product If you have any comments or suggestions about the ECONOMIC UPDATE, or if you would like to receive a copy every quarter please contact us. You can telephone Hume’s Economic Development department on 03 9205 2284, or visit Hume City Council’s website www.hume.vic.gov.au The ECONOMIC UPDATE is designed to be used as an ongoing resource showing trends over time, and we recommend readers keep back issues for future reference. Produced for Hume City Council, PO Box 119, Dallas, Victoria 3047 Designed by adz@work, Studio 104, 9-11 Claremont Street, South Yarra, Victoria 3141 If you would like to advertise in the ECONOMIC UPDATE publication or have a story of interest, please contact adz@work An advertising info sheet in PDF format containing deadlines and artwork specifications is also available from adz@work Telephone: 03 9827 4767 Email: [email protected] The advertising deadline for the next issue is February 1st 2014. Casey has lived her whole life in Craigieburn, 30 years. She attended Craigieburn South Primary School, Craigieburn Secondary College and later Pascoe Vale Girls Secondary College. She has completed both a Bachelor of Business (Management) and a Bachelor of Health Science (Public Health) at University. She is currently half way through her Masters of Public Health. Casey is a long term operational volunteer with Ambulance Victoria. INTRODUCING CR NUNN KNOW YOUR MAYOR In the 2010 Australia Day Honours, Casey was awarded the highest individual honour for an Australian Ambulance Service member, a high distinction medal known as an Ambulance Service Medal (ASM). Only 200 people have been awarded throughout Australia. In 2012, Casey was awarded an Emergency Services Foundation (ESF) Scholarship and travelled throughout the United States and Canada studying recruiting, retaining and leading volunteers. Casey is a former Hume Young Citizen of the Year and a Youth Parliament Participant. Casey has worked as an advisor in both State Governments and State Oppositions; she is also a qualified workplace trainer and assessor. Casey is a member of the Country Fire Authority (CFA) and has volunteered for the Good Friday Appeal, Starlight Foundation and Sids and Kids Victoria. In her new role as Mayor, Casey looks forward to playing a part in supporting local businesses to help them grow and bring positive changes to the city. /3 ECONOMIC UPDATE HUME CITY COUNCIL /4 ECONOMIC UPDATE HUME CITY COUNCIL ONLINE IN HUME Christmas Online to boost your sales! In recent years, the growth of e-commerce and the m-commerce, which is intrinsically linked to social networking, is clearly influencing the way people consume on the internet and has outpaced store-based trading. There are some strong trends emerging in the way the internet is used to buy products. There is a clear trend of bargain hunting and discount dealing and consumers are increasingly browsing between competitors’ websites and social forums. 1. Make sure your website is easy to access and navigate. Also check how your shopping cart works, don’t make your customer start the check-out process again if they don’t complete the transaction immediately. 2. Consider adding some Christmas colours, graphics or design to the website. Think of a physical store ambiance and use this as inspiration for what you want the site to project, maybe a traditional, trendy, classic or fashionable Christmas. 3. Add specials to the site and also make sure that you are offering gift cards and/or vouchers. There is an emerging body of evidence that indicates shops with a successful integration of multi-channel online and store experience are doing better than those without. However this is still a work in progress as even some of the retailers with the best multi-channel propositions still operate to some degree in a vertical silo. Great photography and interesting videos will keep people entertained and therefore on your site for longer. Remember that eight out of ten Christmas season shoppers will look for gift ideas online before making purchases, it is never too early to prepare for the shopping season that begins in late November and in some cases goes beyond December 25. • Utilise inbound marketing. Two general thoughts to keep in mind when preparing your online Christmas offering is transactional websites provide a larger geographical reach and this can be used to drive foot traffic into the physical stores. An example of this is offering online vouchers that can only be redeemed in-store. Also remember regardless of click and collect or perhaps multi-channel mediums, it should be possible for the customer to check your stock online, reserve this product for collection, and then pick it up in-store at a later time. This creates the possibility of another sale when the customer collects their purchase. What other basics can you check to make sure your website is ready for the busier Christmas shopping period? The third strategy is employing pay-per-click advertising; this may cost a little more and have a lower conversion rate than either email or inbound marketing however for Christmas, it should be in the mix. Just like the traditional bricks and mortar store, good customer service and an attractive shopping environment will help captivate the online customer, remember the longer the visitation time the better the conversion rate. Here are three easy online Christmas marketing strategies: • Marketing to your existing customers. • Invest in pay-per-click advertising. Marketing to your known customers is your best revenue source, aim marketing efforts at email, social media and text messaging. For email marketing, plan a series of emails seeking to achieve three goals: firstly encourage the customers to look for pre-Christmas clearance, secondly introduce the new and featured products and thirdly engage with blogs and social media content that will promote your products. If you have a text list, plan a weekly text marketing exclusive Christmas offer from late November through to early December and if you don’t have a text-messaging list it may be time to start building one. The inbound marketing concept attracts new customers with content like blog posts, videos or other helpful material. The idea is that a significant number of your potential customers will use search engines or recommendations from friends to find that perfect gift. These UK Insights provide some interesting facts • Boxing Day was the biggest online shopping day ever. • Mondays were the biggest days to shop online, attracting 12% more visits than any other day of the week. • Customers spent 7% longer (35 seconds) on retail websites on Sundays. • There was a 9% increase on conversion rates from mobile optimised emails. • Shoppers spent 70% more from email campaigns sent in November than campaigns sent in December. • Christmas emails sent on Wednesdays had the highest unique click rate of 3.2%. • Click & Collect services grew by 40%, a saving grace for last minute shoppers. www.experian.co.uk/festive retail CREATING christmas buzz with visual merchandising Good visual merchandising captures the attention of potential customers. It covers everything from the façade of the store, its window displays, the product, product positioning, how you move around the store (this is called traffic flow) and of course the packaging. Done well, visual merchandising awakens the senses, provides the customer with a wonderful buying experience and increases sales. It has been said of the US lifestyle and apparel chain Anthropologie stores that it is hard to tell where the merchandise ends and the displays begin. When customers enter, they immediately leave behind the sterile mall or busy street and are transported into another world. This attention to detail is also reflected in Anthropologie’s catalogue and website. To be inspired, look at some of the merchandising techniques used by Anthropologie online. Where do you start to achieve what Anthropologie has? Start with your window display, consider the window as a theatre stage and be aware that the average customer will have three seconds to be impacted by your window display. During these three seconds your customers will need to: • Be captivated and motivated by your window display. • Understand what you sell. • Be curious or stimulated enough to make an enquiry. • Agree with your message. • Start their buying radar. It is great to develop an overall philosophy for your windows. There are many options available and what you do and how you do it will largely depend upon your marketing strategy. So how do you build an exciting window? Customers love novelty, and now an easy search of the internet can provide some wonderful creative ideas for your windows. Display products in a creative way. When building a product display look for products that are natural add-ons to the main product featured but don’t tell too many stories in a limited space. What are you planning for your Christmas windows? It is important to get into the festive season, Christmas events such as a special launch or late night shopping have proven very effective for retailers. For your window dressings there needs to be a visual link between the window and the product, this can often be achieved by the use of accent lighting on the featured product. Lighting brings colours to life and allows your products to shine. In Australia consumers kick into Christmas mode once the Melbourne Cup is over, decorations can go up in November and Christmas music can begin early December. Make sure you have sufficient stock to support your window display, if you are low in product, change the display. Change displays weekly. Customers want to see new and different products. Stores that don't change displays weekly indicate a lack of interest of ideas. Colour matters. It can demand a shopper's attention, evoke emotion and influence decisions. Now, given that you have thought about and incorporated all of the ideas listed above, for smaller stores there is an increased emphasis on quirky elements to create a unique design, this separates them from the large scale chains. Remember the positioning of the right product, in the right place at the right time has consistently proven to be a successful strategy. Un-priced goods discourage impulse purchases. Many customers won't ask the price and tend to assume the worst, displaying a price provides them with the information they require and is a 'trigger to action’. /5 ECONOMIC UPDATE HUME CITY COUNCIL /6 ECONOMIC UPDATE HUME CITY COUNCIL 2013 Hume Business Award Winners Excelling in Business Hume City supports a vibrant business community boasting approximately 12,600 businesses and more than 71,038 workers. The Hume Business Awards, held on September 19 at PARKROYAL Melbourne Airport, provided the opportunity to recognise business success, sustainability, innovation and excellence within Hume City. The awards provided an opportunity for the Council’s Economic Development team to identify businesses excelling in their area of expertise and cover a range of categories. This year 22 local businesses from a range of industries were recognised. Hume Mayor Councillor Geoff Porter said the awards reflected the strength of the Hume economy, despite the negative business environment. “It has been a challenging time lately for the manufacturing industry, retail, tourism and business in general, reflecting the ongoing structural change in the global and Australian economy. “We have seen the impact this has had on Hume, as an economy in transition with business closures and job losses. Yet along with these challenges, there are opportunities such as with Melbourne Airport and of course our community continues to grow,” he said. These awards help us achieve this vision, as they promote business success, business sustainability and business excellence through the recognition of significant achievements and innovations - Geoff Porter Hume remains a thriving business and employment hub in Melbourne’s North, providing 3% of Victoria’s GDP. There is current and future growth in retail and hospitality businesses, particularly in Craigieburn with the new town Centre to open next month, and existing businesses across many sectors are showing growth or improving sustainability. “Council is passionate about celebrating business excellence efforts and to have Hume recognised as a leader in achieving social, environmental and economic outcomes. “These awards help us achieve this vision, as they promote business success, business sustainability and business excellence through the recognition of significant achievements and innovations,” he said. This year’s Award winners will also be eligible for nomination in the regional Northern Business Achievement Awards (NBAA), run by NORTHLink, a business network and regional development partnership representing Melbourne's northern region. Melbourne Airport is the Awards’ major sponsor. This support allows for an excellent event that was run well and allowed businesses to celebrate a great year of success and look forward to years to come. Celebrating Excellence Winners - Hume Business Awards 2013 Category Business 1 Business 2 Business 3 New and Emerging Small Business Award Fit as a Fiddle BoxingFit Craigieburn Surefoot Small Business Award Kemizo Family Entertainment Telstra Store Broadmeadows Retail Business Award Mayflour Cakes Customer Service Award Snoopy's Ice Cream & Food Bistro Hanrob Pet Hotels Cafes & Restaurants Award Moonlight Café Ginger Club Restaurant Tourism and Hospitality Award Table Matters at Emu Bottom Parkroyal Hotel Rupertswood Mansion Building and Works Code of Practice Award Gibbs Plumbing Pty Ltd Industry Education Engagement Award Winslow Constructions Human Resources Award Masters Home Improvement Innovation and Enterprise Award DVR Engineering Manufacturing (Small) Award Naturally Good Products Manufacturing (Large) Award Selectrix Industries Pty Ltd Sustainability and Environment Award Willow Ware Australia Pty Ltd Business Leader Award Russell Hughes - Integra Systems QNV Constructions /7 ECONOMIC UPDATE HUME CITY COUNCIL /8 ECONOMIC UPDATE HUME CITY COUNCIL Australian Made Campaign This year, the number of businesses using the Australian Made Australian Grown logo rose to 1,800, with more than 10,000 products across all 34 classes of goods registered to use it. 65% of shoppers consciously buy Australian made or grown products wherever possible We sat down with Australian Made Campaign Chief Executive, Ian Harrison, to talk about the history of the Australian Made brand, how it is helping Australian businesses and future developments. The Australian Made Campaign has an impressive history; could you please touch on this? The Australian Made, Australian Grown (AMAG) logo is Australia’s country-of-origin certification trade mark for genuine Australian products and produce. The iconic green-and-gold kangaroo logo was designed by internationally acclaimed Aussie, Ken Cato, launched by the Federal Government in 1986, and administered for the next 10 years by the Advance Australia Foundation. 82% feel it is ‘very important’/’important’ that processed food is Australian grown After the Advance Australia Foundation closed its doors in 1996, the campaign was re-launched through the Australian Chamber of Commerce network in 1999, with the not-for-profit Australian Made Campaign Limited (AMCL) now administering the logo under a formal agreement with the Federal Government. The campaign is funded by the license fees businesses pay to associate their brand or products with the AMAG logo. All products that carry the AMAG logo must be registered with AMCL. 89% believe it is ‘very important’/’important’ that fresh food is Australian grown How does the Australian Made Campaign support businesses? The logo supports growers, processors and manufacturers in Australia by helping businesses to clearly identify to consumers that their products are Australian. At the same time it provides consumers with a highly recognised and trusted symbol for genuine Aussie products and produce. There are 25 businesses in Hume City Council registered to use the AMAG logo. The trust and standing behind the brand benefits companies on a domestic and international scale as it emphasises the integrity of a product. 74% support for farmers, fishermen and businesses (Roy Morgan research) How many Australians trust the Australian Made, Australian Grown logo? There is something to be said for consistent branding. The AMAG logo has a lot of weight in the domestic market - 98% of people recognise it and 88% trust it. Australia is also seen as trustworthy internationally because consumers have a positive view about Australia generally. Products from Australia are seen as clean and green, innovative, good quality, adhering to high safety standards, (particularly for food and ingestibles) and made by likeable and adventurous people. The trust and appeal of our nation brand makes Australian-made and Australian-grown products desirable. AMCL administers and promotes a logo of authenticity as a selling point to benefit product sales. Why is compliance and auditing the use of the logo important? Maintaining the trust in the AMAG logo is paramount. The AMAG logo carries a lot of weight in the community; it drives pride and helps people to purchase products that invest back into the community. Without that trust, it is worthless. As a result, compliance plays a key role in generating ongoing trust in the brand’s integrity. Licensees are audited accordingly to ensure they comply with the requirements, any and all complaints are investigated thoroughly. How do your partnerships with local government benefit your campaign, the Council body and the community? Hume City Council is a great supporter of the Australian Made Campaign, using the AMAG logo extensively throughout its initiatives and communications. As a Campaign Supporter, Hume encourages businesses directly on an economic development level, showing support and advocating for local growers and manufacturers. The partnership also assists the Economic Development Department to provide support to businesses making and growing products and produce in the City of Hume, by encouraging them to use the logo and have their products instantly recognised as local. Use of the logo by the Council helps establish the Council’s economic development credentials, and this in turn encourages business investment in the region, leading to jobs and improved standards of living. Consistent branding What is next for the campaign? We are maintaining our international marketing efforts to promote the Australian brand, mainly through trade and retail promotions in Asia. There are even ‘Australian Made’ branded stores in South Korea, which adds value for licensees seeking to export their products to that region. We are also developing our digital channel to market. We recently re-launched our website, www.australianmade.com.au Featuring more than 10,000 products from thousands of Australian manufacturers, processors and producers, the website enables consumers to quickly and easily find locally made, grown or caught products. Only products certified to carry the AMAG logo can be featured. Every business has its own online listing, fully searchable by name or products offered and integrated with social media. Our social networks are also growing daily. AMCL now has approximately 35 thousand Facebook followers and nearly three thousand Twitter followers. There is great potential for us in the digital space that we will continue to harness. For more information about the Australian Made, Australian Grown logo please visit www.australianmade.com.au • Only for use on goods sold outside Australia. • Must meet all the criteria of at least one of; Product of Australia, Australian Made, Australian Grown or Australian Seafood. • Must not give a misleading impression as to the origins of the major ingredients or components of the product. Product must meet these two criteria: • All the significant ingredients must be grown in Australia. • Product needs to have been substantially transformed (not simply assembled or packaged) in Australia. • All the significant processes must be undertaken in Australia. • 50% or more of the cost of production must be incurred in Australia. • Must be a seafood product with all significant ingredients grown/harvested in Australia. • All the significant ingredients must be grown in Australia. • All, or nearly all, of the processing has to be carried out in Australia. • Goods may not be exported and re-imported. • All the significant processes must be undertaken in Australia. /9 ECONOMIC UPDATE HUME CITY COUNCIL / 10 ECONOMIC UPDATE HUME CITY COUNCIL Willow Ware Willow Ware moved to the City of Hume in 2003 after 113 years in North Melbourne. An acquisition of an interstate competitor saw them grow by 30% in 2010. Willow has been an Australian manufacturing company since 1887 and was started by brothers Ralph and Richard Wilson. The business started making metal machinery in their backyard before they opened a factory in North Melbourne where they started producing jams and preserves. Soon the brothers realised that their jams were being purchased principally for the container. They then began making containers without the jam, setting the business on its pathway into homewares. Metal canisters came next after the brothers bought a lithographic press in the early 1900’s and they began making printed biscuit tins for Guests and Arnotts' amongst others. “One of the company’s principles to avoid putting people off during the depression was to introduce one week on one week off for all employees. The employees could choose to take their pay in cash or kind. On their week off they would sell this Willow product to generate more income. Nobody was put off during the depression,” said Ralph Wilson Willow CEO. “As a family business we value trust. This creates a place where people want to work,” said Mr Wilson. When the founder Ralph died in 1930 he asked his son, also named Ralph, to look after his old men. When the old men retired the company gave them half pay for life. When they died, if their wife was still alive she would then receive half of that amount for the remainder of her life. “We are a family company and we bring the values of a family along with us. This includes acknowledging that the company doesn’t just affect the proprietors, but also the families of all our employees. We employ for values and train for skill. It is important for us to employ people with integrity and solid values. The company name “Willow” came from printed canisters made shortly after the First World War. These canisters had the traditional Willow plate pattern on the outside. Householders would go to the iron mongers and request ‘those Willow products.’ The company became colloquially known as Willow and they haven’t looked back since. This continued until 1960, when the company became one of the first to draw up an official superannuation scheme and the old employees still working at the company had their superannuation backdated. Australian Made is not only a strategy for Willow; it is built into the ethos of the company through its heritage and legacy. The company has diversified over the years, always offering different products to the market to stay relevant and to keep the business going. In the early 1900’s the company made tins containing bike kits for punctures which were one of the most popular products of the time. When the First World War came along, Willow started making ammunition boxes for the soldiers. Being a munitions manufacturer helped the company through the war years. “Australian Made is important to us, as we are a company with a family and Australian heritage. We believe a lot of people prefer Australian Made products. Being Australian Made creates strong brand loyalty as our products are usually of a higher quality and reflect Australian employment. In the 1930’s and 40’s the company began making bakeware. In the 1960’s the company started making plastics when they brought their first plastic injection mould from Europe. The manufacture of Heat Beads barbeque fuel soon followed. Family member and Willow CEO, Ralph Wilson, is very proud of the company’s heritage. Since his great grandfather Ralph started the business with his brother Richard, there has always been a Ralph involved in the management of the company. “An example of this is in our coolers. Willow makes coolers to a much higher quality that many of the international competitors. Our experience also plays a part in this. We are proud to be an Australian manufacturer,” said Mr Wilson. Willow has always been Australian Made and this is their competitive advantage. They choose to make products specifically for Australian conditions. “The Australian Made logo is excellent as it shows the consumer they can trust our products. We are always aiming for trust which is why quality is important to us. Willow products have a high level of trust by consumers. As long as we keep prices about the same as the imported competition, then we believe people will choose Australian Made. Willow focuses on governance as a core value and has integrated key governance values throughout its business systems. It is important to the company to do the right thing by employees, customers and suppliers every time, every day, in everything they do. “Education and training are also important to ensure everybody has suitable skills to feel comfortable in their role. Each year we go through a range of topics to keep employees informed. We believe our business principles work because we ensure best practice and best systems as a minimum standard,” said Mr Wilson. Willow has won many awards, 44 since the 1970’s. Many of these are for business systems, innovative design, environment and safety. The company moved to Hume City in 2003 after 113 years in North Melbourne. An acquisition of an interstate competitor saw them grow by 30% in 2010. Recently Willow acquired Starmaid, whose specialty was peg manufacturing. Willow has transferred these custom engineered machines over to their facility in Hume. This acquisition has seen Willow grow by 50% and is now the largest peg manufacturer in Australia. Diversifying is key to Willow’s business growth. Agility to take up new opportunities such as the acquisition of the Starmaid brand as well as manufacturing and supplying components to Toyota has ensured growth in their market. To find out more about Willow Ware please visit www.willow.com.au Family longevity We believe a lot of people prefer Australian Made products. Being Australian Made creates strong brand loyalty as our products are usually of a higher quality and reflect Australian employment. - Ralph Wilson Tullamarine / 11 ECONOMIC UPDATE HUME CITY COUNCIL / 12 ECONOMIC UPDATE HUME CITY COUNCIL Hypersonic Industries Hypersonic Industries’ main objective is to provide customers with well designed, good quality, safe products ensuring customer satisfaction. They aim to provide not just the cheapest products but incorporate quality, providing value for money. A great story of constant business innovation which has seen the company stay ahead of the trends and keep the business viable, Hypersonic Industries is a family business run by brother and sister team Melissa and Matthew Wells. The company currently manufactures metal bed frames and tubular bunks for Australian families and the accommodation/commercial industries. All products are 100% Australian Made using Australian raw materials where possible. Hypersonic began in 1963 and Melissa and Matthew’s parents, David and Ann, bought the company in 1975. The company began manufacturing wrought iron tables and chairs. In the late 1970’s David and a member of his retail team designed and manufactured the first folding bed. The first three folding beds were put into production and they sold immediately. The business began to focus solely on folding beds and the manufacturing of tables and chairs was slowly discontinued. For years, truckloads of folding beds were distributed Australia wide. These folding beds were the first “sofa beds” on the market and they were 100% Australian Made, good quality beds that every household needed. Hypersonic Industries decided to grow their bedding range into tubular beds and bunks. From the early 90’s through to today new beds were designed and manufactured to fulfil market needs. “In 2003 bunk laws came into effect, this was great for Hypersonic as it weeded out a lot of beds that were poorly made by competing manufacturers. All our bunks were tested, approved and this proved to be a great marketing tool. In 2005 my parents decided to retire, opening the door for my brother and I to buy the business. We moved forward with drive and motivation of growing the business. “General running of the business remained the same however we invested more time in marketing hence joining the Australian Made Campaign and developing the commercial business sector," said Melissa Wells. The Hypersonic Industries commercial division is an ongoing source of business that promotes and sells beds to the Australian Defence Force, Australian Camps Association, Emergency Housing, YHA Backpackers and various other commercial organisations. Hypersonic Industries also supplies Australian Made quality metal bed frames and bunks to the commercial and domestic market (retail outlets, retail online buying). “Knowing your competitors and the market, doing your research and looking after your customers before and after their purchase is what helps our business remain strong in the market. The challenge of running the business is exciting. Existing as a family business for so long gives us that extra spark to drive the business further. “Our biggest challenge is competing with imports. Imports have been around for many years, products coming and going, cheap prices and long lead times. We understand we will never compete on price. Instead we produce good quality products with options and colour choice modifications provided with efficient service and value for money. These are all key factors that help us remain strong in the market,” said Ms Wells. This year Hypersonic Industries reached 50 years, an impressive feat in the tough retail and manufacturing markets. Hypersonic Industries have had many career highs over this period of time. “We have been awarded a three year contract with the Australian Defence Force and become a preferred supplier to the Australian Camps Association and YHA backpackers. Bunk beds are our biggest retail and commercial markets. We had all our bunks tested and approved to the Australian Standard to ensure consumers can have confidence in the safety of our products. “Retail is a hard market and a lot of people do buy on price and find later it wasn’t built to last. Commercial businesses look for quality. School camps are an example where safety is high priority, they will do the research and buy on quality not on price,” said Ms Wells. Hypersonic Industries are always on the search for new processes or new ways to manufacture their products. Their size growth provides more buying power to source cheaper raw materials, helping the company to remain competitive within the Australian market. “The market is always changing, as long as you are changing with it you can remain successful. To us, it is very important for Hypersonic to be part of the AMAG Campaign and it gives us a commercial advantage. “The AMAG Campaign promotes the importance of buying Australian Made products. We use this tool and the Australian Made logo on everything we possibly can,” said Melissa. The Hume City Council region has benefitted Hypersonic Industries as a well-developed business area. For more information on Hypersonic Industries please visit www.hypersonic.com.au Silhouette Karts provide a full service karting experience for those seeking a thrill; they run the racing track at their premises and also manufacture their own full range of karts. Their extensive racing knowledge and involvement since the 1980’s contributes to their expertise. Manufacturing Somerton Silhouette Karts is a family business run by father and son, Frank and Glenn. When the business began in the early 1980’s it was a different business and there weren’t as many Race Karts available. Silhouette Karts have adjusted their business offerings over time to suit the growth of the company. Originally Frank started designing karts in the family garage and building them there, the first kart he built was in 1984. From there he opened up a Go Kart shop and had a couple of locations before relocating to the present Somerton location. Racing Track All karts are Silhouette Karts’ own designs and they manage all elements of the construction in-house, no components are outsourced. Their focus is providing professional racing karts and find their ability to fine tune karts makes a difference to the client. Silhouette Karts have a second business area, running the racing track for groups. Frank and Glenn have been managing the track since 2001 and allow people to bring their own kart to use as well as providing their own hiring service. Frank and Glenn work together on the chassis design. Frank and members of his team weld and handle the chassis construction whilst Glenn works on the engines and assembly of Race Karts. Other employees manage the Race Karts and rentals. Over the years they have moved with the times between commercially manufacturing and manufacturing hire Race Karts and frequently assessed the business offerings. “There are many different components, sizes, thicknesses and requirements for the chassis depending on the requirements of the driver. This is where the years of experience and knowledge really help,” said Frank. Silhouette Karts are mainly competing with companies from Europe with high scale production, therefore Australian Made is an important point of difference for Silhouette Karts that their customers really value. “Our karts have always been Australian Made, since 1990 when we started professionally manufacturing the karts and we also had been supporting Australian Made all this time so wanted to show it. “Being Australian Made is definitely a selling point, it also allows us to keep our karts competitively priced as they are made right here instead of being shipped from Europe. We stock all parts for our customers, this reduces the cost of sourcing a part for them as we don’t have to import it. “It provides more work and therefore job opportunities which is something we are proud of. The fact people know we manufacture here seems to be a positive,” said Frank. “Whatever we can do here we do, the entire framework, all the bars and steel work. This is also how we control the quality of the karts we manufacture; we know exactly how they have been made,” said Frank. Commercial advantage Silhouette Karts “It is pretty unique for tracks to offer the opportunity for people to bring their own karts; it works for us because it supports our own manufacturing division. Many people use karts they have bought from us on the track and we are able to provide them the additional facility of servicing their karts. “We can also maintain the standard of the Race Karts we hire and spend a lot of time doing this in the winter when demand for karts generally relaxes a bit. Summer is always very busy at the track with corporate bookings and the holiday period. It is great how both aspects of the business, the manufacturing and the track tie in well together,” said Frank. Glenn still races Go Karts himself, he and his father are enthusiastic about helping people that want to race karts professionally and recreationally find the right. For more information on Silhouette Karts please visit: www.silhouettekarts.com.au / 13 ECONOMIC UPDATE HUME CITY COUNCIL / 14 ECONOMIC UPDATE HUME CITY COUNCIL Kelly & Windsor In 2001 Trevor Beuth began Kelly & Windsor. His vision behind the brand was to manufacture Australian Made high end textiles. The business focus for Kelly & Windsor is the production of quilts, pillows and under blankets. Kelly & Windsor started using alpaca wool as the basis for all products in the company’s early days, becoming the first commercial manufacturer of alpaca bedding products. Alpaca is an amazing fibre, originally from Peru, and has been imported into Australia for the last 25 years. Australia now has 125 thousand animals, the largest amount of alpaca’s outside of Peru. Managing Director Trevor Beuth explains that specialising in this unique wool has seen Kelly & Windsor become recognised as the world leader in alpaca bedding. “Our location in Hume City has also really benefitted us from the point of view of sourcing labour and attracting staff from the area with the expertise needed to produce our product. There is also a great community here. “The special business we have created makes me very proud, we are recognised as the world leader in alpaca bedding,” said Trevor Beuth. Kelly & Windsor have not only sought to include inventive materials in their products but to also produce the products in a quality way. Fabric, packaging and product design is very important to create a holistic impression for the customer. “Being an Australian Made company has always been important to me and it is important to remain this way. We must be inventive with our products to compete against the lower cost of production and products in other countries. “We are a very small specialised company with a total of nine employees, specialising like this to produce high end bedding products is our commercial advantage. It is a very hands on environment and any suggestion from an employee on how we can improve our product is considered if it will increase the final quality. We create all our designs from scratch,” he said. Originally Kelly & Windsor focused on quilt design to develop a high quality product that suited the rare fibre. After establishing this basic range, the range was expanded. In 2005 Kelly & Windsor developed Alpaca Gold, their premium range with 100% alpaca wool. “Since then we have expanded the range to do summer weight quilts, blends with cotton, machine washable quilts and our latest product is a blend of alpaca and bamboo. This is a really unique story as nobody is producing a bamboo alpaca blend. Being an Australian Made company has always been important to me, to remain this way we must be inventive with our products. - Trevor Beuth “Bamboo is a natural fibre, antibacterial and moisture absorbent, so this really ticks all the boxes for us. It is also a very sustainable product requiring no pesticides. The process of making fibre from bamboo is environmentally, economically sustainable and biodegradable. The fibres are especially soft and they perform brilliantly in bedding,” said Mr Beuth. The bamboo product was launched at the Home Textiles show in Hong Kong last year where it did incredibly well. Kelly & Windsor actively exhibit their products at a range of shows around the world, realising the weight and respect the international market has for Australian Made products. Last year Kelly & Windsor attended Heimtextile which is the biggest international trade fair for home and contract textiles. As this was a great success they will be attending again this year on 8-11 January. As a small producer of high end premium products Kelly & Windsor have identified four channel markets which they target for best product exposure and leverage. Domestic Retailers Kelly & Windsor are aware their product has a limited domestic demand, only 10% of Australian’s are interested in the price point as it is a luxurious and therefore expensive product. The company sells to domestic retailers including Harvey Norman and in the past David Jones. "The vast size of Australia can be a boundary for this market but we feel it is important to continue to sell in our own backyard. We are involved with a number of initiatives to grow and strengthen our position with the domestic market being as tough as it is,” said Mr Beuth. Tourism market This is one of Kelly & Windsor’s strongest channels. Currently the company has about 20-30 partnerships with Chinese owned retailers based in Australian and specialise selling to Chinese tourists. There are large numbers of inbound Chinese, Hong Kongese, Taiwanese and Korean tourists coming to Australia for the ‘Australian experience’ and whilst here they want to purchase Australian Made products. “It is a specialised channel and we are very successful at it. A combination of our service and quality leads our Chinese partners to be very pleased with the products we provide. “The tourists are prepared to pay for the premium product because it is Australian, a brand they trust. It is also unique, clever and an exclusive product that is not manufactured to the same standard in their countries. “A lot of these tourists are lifestyle driven and have the wealth to purchase a quality product; this is why we put a lot of effort into ensuring all aspects of our product are manufactured to perfect standards,” said Mr Beuth. Manufacturing Campbellfield Exports A large percentage, approximately 30%, of the Kelly & Windsor business is comprised of overseas exports. Over the last two years the company has experienced record numbers of exports, mainly into China. “This market has demand for the more expensive quilts. In the last two to three months there has been record business in this market. This is because behind our product there is authenticity, unique design and a strong story that the international market responds to. “I am very proud of our business, a small textile company located in Hume City Council and to see the success of this product in the international market is really thrilling. As a micro business we are focused on showing you can export internationally and create jobs within manufacturing, you just need to have an innovative product,” said Mr Beuth. The potential for the company is largely export driven and Trevor Beuth is confident of the international opportunities, this is where he allocates a large percentage of his time and energy. “For this reason I wasn’t interested in competing with other bedding textile manufacturers. I researched alpaca wool and created a product out of this as I was keen to find an individual spot in the market,” he said. Online Currently Kelly & Windsor have a few online shopping stores which will be consolidated into one to strengthen their online presence. Recently receiving a Federal Government support grant to assist, Kelly & Windsor are developing state of the art multilingual, multi-currency, business to customer webpage to support all existing channels. The eventual plan for the company is to market via the internet. This will assist as a strong platform to spread business opportunities further to international markets. For more information on Kelly & Windsor please visit www.kellyandwindsor.com / 15 ECONOMIC UPDATE HUME CITY COUNCIL PEOPLE IN HUME RUSSELL HUGHES JEFF GRAHAM When Russell joined his son Paul at Integra Systems 20 years ago, it was to realise the engineering and business dreams he had been developing throughout his established 30 year career. Russell was recently recognised at the Hume Business Awards. Jeff Graham works as General Manager at Goonawarra Gold Club. In this role he spends the majority of his time with financial management and Board reporting, although he still likes to get out and about, ensuring patrons are enjoying their round. “I have been able to exploit my passion for innovation, work with many diverse and interesting people in many capacities, mentor the younger generation and help my son to build the business. This has provided me with a huge amount of personal satisfaction and is what continues to drive me now. Goonawarra Golf Club is a boutique sized club and as a result Jeff’s role is all-encompassing, covering Human Resources, Accounts, Marketing and General Maintenance. “Being recognised as a Business Leader in my business community was very humbling and I was extremely proud to be a recipient of this award. I want to see the manufacturing industry thrive for our future generations and the older generations recognised for their contribution,” said Russell. Russell believes Australian Manufacturing is integral to the future of Australia as a country and the Livelihood of communities. “We need to continue to have a large manufacturing footprint in Australia to successfully trade with other countries and ensure rapid time-to-market in our own country. This combined with our innovation ‘smarts’ is what will keep Australia competitive and thriving. “Making our customers' products here in our facility within Australia ensures IP is retained, innovative manufacturing processes are employed, quality is not compromised, products are brought to market quickly and most importantly products can be revised and updated quickly to ensure maximum competitive advantage,” he said. Most importantly Russell has a very strong belief in Australia. Jeff has been working at Goonawarra Golf Club for six and a half years, prior to his role as General Manager he was a Club Professional (PGA Member). He enjoys his role as it allows him to oversee the golf club whilst simultaneously ensuring patrons are getting the most out of their game. “The challenge of improving the course is far and away the most enjoyable aspect which in turn provides great enjoyment for the golfers,” said Jeff. Goonawarra Golf Club is a local club that relies on Australian Made for the majority of their supplies. “Australian Made is very important to us, our course, suppliers, staff and customers are entirely Australian based. It is everything to our organisation. I grew up and live in Sunbury and despite having lived in Melbourne for 15 years I returned because of the close proximity to the CBD and the rural feel of Sunbury. "I have really enjoyed returning to the area. It is really special that we are able to provide a high quality golfing experience to the locals in the area and also tourists. Being so conveniently located to the airport is a great motivating factor for people to come and visit the club,” he said. melissa m innes c Melissa McInnes is the owner and Head chef at Roquette Bar & Grill. Her days are full with everything from admin and marketing to running the busy kitchen. A qualified chef with business management qualifications, Melissa has worked in hospitality for the last 15 years. She has been self-employed for almost 10 years of this time. Melissa opened Roquette Bar & Grill late last April and she was prepared for a tough 12 months full of extra time and effort. “It really has been amazing. After many years of living in Sunbury I was inspired to bring something different to the region and Roquette does this. “I wanted to create a venue that was warm and welcoming but stylish and casual all at the same time, one with a strong focus on Australian produce and wine,” said Melissa. Roquette Bar & Grill serve a handpicked range of wines from the most notable wine regions around Australia and the best quality Tasmania beef available from companies that are committed to sustainable and ethical farming practices. “We apply these values when selecting all our produce for the restaurant. We believe a better future exists for our farmers and fishermen if we all spend a little extra on buying Australian produce and I think our customers appreciate the quality and concur that ‘you get what you pay for.’” “Buying Australian Made to me means supporting your local business, it means keeping the dollar in the country for as long as possible and giving our farmers and industry a better chance at surviving. We have an obligation as Australians to support our local businesses,” she said. Property Update Global house prices are on the mend according to data compiled by Knight Frank. The research covers 55 countries across the globe and out of the 55 there was an increase shown in 37 of them. Dubai recorded the largest rise on annual basis increasing 22%, followed by Hong Kong 19.1%, Taiwan 15.4% and China 14.8%. Australia came in 22nd place with annual growth of 5.1%. The study also revealed that for the first time since 2010 some European countries recorded positive annual price growth. However mainstream prices in Greece, Spain and Italy are now 31%, 29% and 15% below their respective market peaks. The United States is also showing positive signs where nationally property prices increased by over 10%. From the Hume Finance Department The economies in these states have been affected by a fall in construction and the relatively high Australian dollar. Nevertheless currently conditions have improved and this has been mainly attributed to housing affordability being at its best levels since early 2,000, outside of the Global Financial crisis. Hopefully the property market continues to strengthen along with the gains made in the share market over the year, so everyone can look forward to a joyous Christmas and a prosperous New Year. This encouraging global performance has also filtered through into the local market where auction clearance rates in Melbourne are still tracking above 70% and the inner suburbs are performing extremely well. This is also slowly being felt in the outer suburbs where prices are starting to get some traction again spurred on by the relatively low interest rate environment. However research house BIS Shrapnel does have a word of caution for Melbourne, Tasmania and the ACT saying conditions in these markets maybe dampened going forward due to their underperforming economies and in some cases excess supply. HUME CITY SNAPSHOT No. of Residential Properties by Precinct September Quarter 2013 Attwood1,021 Facts at a Glance Broadmeadows/Jacana 4,822 Bulla/Wildwood/Clarkefield336 Campbellfield/Fawkner September Quarter 2013 Total number of residential properties in Hume 60,311 1,715 Craigieburn 12,886 Number of Residential Lots Released 251 Dallas/Coolaroo Number of Planning Permit Applications 254 Gladstone Park 3,235 Greenvale 3,892 Meadow Heights 4,554 Consumer Price Index, Melbourne (% change from previous quarter) 1.4% 3,198 Mickleham/Yuroke/Kalkallo June Quarter 2013 Number of Property Sales 907 Hume City Unemployment Rate (%) 7.0% 484 Oaklands Junction 137 Roxburgh Park 5,614 Sunbury/Diggers Rest 13,224 Tullamarine/Melbourne Airport/Keilor 2,954 Westmeadows 2,239 Hume City 60,311 Source: Hume City Council Building Work December Qtr 2012 Domestic/Residential Hume City No. of Building Permits Melbourne Value of Building Work ($’000) 721 % of Melbourne No. of Building Permits Value of Building Work ($’000) No. of Building Permits $124,711 13,563 $2,922,033 5.3% Value of Building Work 4.3% Commercial/Retail 62 $31,332 1,791 $977,255 3.5% 3.2% Industrial 15 $16,018 186 $131,546 8.1% 12.2% Other 23 $75,168 554 $542,303 4.2% 13.9% Total 821 $247,229 16,094 $4,573,137 5.1% 5.4% The value of all building works in Hume City during the three months to June 2013 was $247 million, representing 5.4% of the value of all building works in the Melbourne Metropolitan area. Domestic/Residential works amounted to $125 million and Commercial/Retail works $31 million. A total of 821 building permits were issued in Hume City in the three months to March 2013, 5.1% of the Melbourne Metropolitan total. / 17 ECONOMIC UPDATE HUME CITY COUNCIL / 18 ECONOMIC UPDATE HUME CITY COUNCIL Melbourne Water Reserves October 2012 Vol (ML) Reservoir Thomson Waste September Quarter Domestic Waste Collection October 2013 % Full Vol (ML) % Full 797,354 74.7% 876,084 82.0% Cardinia 251,922 87.8% 198,296 69.1% Upper Yarra 178,445 89.0% 119,859 59.8% Sugarloaf 95,775 99.5% 95,153 98.9% Silvan 35,994 89.0% 35,343 87.4% Tarago 24,514 65.2% 35,130 93.5% Yan Yean 28,410 93.9% 27,890 92.1% Greenvale 18,699 69.7% 20,452 76.2% Maroondah 22,219 100.2% 17,489 78.9% O’Shannassy 3,222 103.2% 3,194 102.3% 1,456,554 80.4% 1,428,890 78.8% Total Source: Melbourne Water 2012 - Total waste collected (tonnes) 2013 9,517 9,932 11.9 12.5 8,506 8,675 - Kilograms per household per week (kg) Waste weighed at Council landfills (tonnes) Source: Hume City Council. Note: Land filling operations at Bolinda Road ceased on 29 February 2008. All waste received at the site as of 1 March 2008 is transferred offsite to recyclers and other landfills. International Air Traffic June Quarter Melbourne Airport 2013 2012 Passengers (no.) 1,569,509 1,701,766 Freight (tonnes) 55,650 59,819 8,507 8,928 Aircraft Movements (no.) Source: Air Transport Statistics – International Airlines, Department of Transport and Regional Services. Weather Information 2012 September Quarter Average Minimum Daily Temperature (°C) 2013 Average Maximum Daily Temperature (°C) Average Daily Rainfall (mm) Total Rainfall for the Quarter (mm) 6.3 7.8 15.1 16.4 1.2 1.5 112.2 141.8 Source: Bureau of Meteorology. Note: Weather information recorded at Melbourne Airport monitoring station. Property Sales Source: Hume City Council COMMERCIAL/RETAIL VACANT 2 40 800,000 400 800,000 700,000 700,000 350 700,000 30 600,000 300 600,000 500,000 25 500,000 250 400,000 200 15 300,000 150 200,000 10 200,000 100 200,000 100,000 5 100,000 50 100,000 0 0 13 13 700,000 60 600,000 600 600,000 50 500,000 500 40 400,000 400 300,000 300 300,000 200,000 200 200,000 100,000 100 100,000 20 34 30 DEC MAR JUN 12 13 13 0 0 JUN 12 SEP DEC MAR JUN 12 12 13 13 0 0 578 700 538 700,000 563 800,000 70 501 800 31 SEP 12 median price no. of sales 800,000 10 JUN 12 DEC MAR JUN 13 12 13 80 29 500,000 2 SEP 12 RESIDENTIAL IMPROVED median price no. of sales 39 7 6 4 0 JUN 12 INDUSTRIAL IMPROVED 37 8 1,000,000 0 525 1,500,000 300,000 4 2 0 SEP DEC MAR JUN 12 12 13 13 2,000,000 8 400,000 172 16 9 9 JUN 12 2,500,000 10 250 400,000 14 0 241 20 median price 16 500,000 300,000 COMMERCIAL/RETAIL IMPROVED no. of sales 284 35 600,000 SEP DEC MAR JUN 12 12 13 13 6 median price no. of sales 800,000 1 1 0 12 RESIDENTIAL VACANT median price no. of sales 290 1 JUN 12 INDUSTRIAL VACANT median price no. of sales JUN SEP DEC MAR JUN 12 12 12 13 13 500,000 400,000 0 THE STATS MEDIAN PRICE OF RESIDENTIAL PROPERTY SALES BY PRECINCT March Quarter 2013 Vacant Suburb Attwood Improved $535,000 na $560,000 na $310,000 na $309,500 $170,700 na $208,450 na na na na $315,500 Campbellfield/Somerton Craigieburn Vacant $320,000 Broadmeadows/Jacana Bulla/Wildwood/Clarkefield/Oaklands Junction/ Yuroke/Mickleham/Kalkallo June Quarter 2013 Improved $198,000 $335,000 $198,500 $348,000 Dallas/Coolaroo na $283,250 na $280,000 Gladstone Park na $382,500 na $383,000 Greenvale $227,000 $561,000 $226,000 $590,000 Meadow Heights na $309,500 na $300,000 Melbourne Airport na na na na Roxburgh Park $193,000 $365,000 $210,000 $353,000 Sunbury/Diggers Rest $212,500 $340,000 $215,000 $340,000 na $367,500 na $383,000 na $370,000 na $411,000 $200,000 $342,000 $207,500 $342,250 Tullamarine Westmeadows Total Source: Hume City Council. Note: ‘na’ denotes not available due to an inadequate number of sales or incomplete data. Excludes ‘Rural’ sales. RESIDENTIAL LOTS RELEASED no. of lots no. of lots 1000 1000 900 900 800 800 700 700 600 600 500 500 400 400 300 300 200 200 100 100 0 Source: Hume City Council Note: ‘Lots Released’ refers to the number of lots which have been completed to the satisfaction of Council and issued with a Statement of Compliance. The number of residential lots released was 251 during the September Quarter 2013, down by -48.6% on the previous quarter (488). During the September Quarter 2013, Sunbury recorded the highest number of lots released (96). Craigieburn had the second highest number of lots released with 88, followed by Greenvale with 18 and Broadmeadows with 16 lots released. 0 SEP DEC MAR JUN 09 09 10 10 SEP 10 DEC MAR JUN 10 11 11 SEP DEC MAR JUN 11 11 12 12 SEP 12 DEC MAR 12 13 JUN 13 SEP 13 Unemployment Source: Small Area Labour Markets, Department of Employment and Workplace Relations % % 20 20 18 18 16 16 14 14 12 12 10 10 8 8 6 6 4 4 2 2 0 JUN 10 0 SEP 10 DEC 10 MAR 11 JUN 11 SEP 11 DEC 11 MAR 12 JUN 12 SEP 12 DEC 12 MAR 13 JUN 13 The unemployment rate for Hume City increased to 7.0% in the June Quarter 2013. Hume City’s unemployment rate remains higher than both the Melbourne Statistical Division (5.6%) and Victoria (5.6%). Unemployment for Hume City is lower than the same quarter last year, when the unemployment rate was 7.8%. KEY B - Broadmeadows Statistical Local Area H - Hume City C - Craigieburn Statistical Local Area M- Melbourne Statistical Local Area S - Sunbury Statistical Local Area V -Victoria for more hume statistics visit: Hume Economic Profile or Powered by: Hume Community Profile Powered by: / 19 ECONOMIC UPDATE HUME CITY COUNCIL Hume City the place to invest THE STRATEGIC LOCATION FOR YOUR BUSINESS • Logistic Advantages • Melbourne Airport • Large Local Workforce • Business to Business Opportunities • Green Field Development Opportunities • Predictions of Strong Growth • Diverse Housing Stock • All just 20 minutes from Melbourne’s CBD If your business is planning to move to, or significantly expand in Hume City, the Economic Development Department can help smooth the process and connect you to opportunities that will support your vision for business growth. Contact the Economic Development team to arrange a confidential consultation. PH: 9205 2200 E:[email protected] 181,886 12,600 businesses 60,311 504 km in size residents residential properties 2